For updating the Navigation, login to the portal with the user having Administrator web role.
Hover over the Navigation and select Edit
This opens up the dialog box, here we can edit or insert a new navigation link. To add new navigation link click on “+”
We can either specify any existing page within portal or can point to any external URL and can also show up image + text or image only.
This adds the new navigation link
Similarly, we can add new child links or move a link as child link which then appears as drop down. Here we have moved the new Search Home link inside Support by dragging.
The updated navigation looks like below
Hope it helps..
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Nishant Rana's Weblog 
Hi Nishant,
Can you provide the steps on how to make the user an Admin to perform above steps, playing with a trial org, in the Portal Web roles, added my user to the list of users, but don’t see an option to login with this user to the portal. Also registered as a user in the portal with the above user’s email address, don’t see those options for editing the portal navigation.
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Give Administrator web role to the contact portal user
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Hi Nishant, how do I change the height/formatting of the navigation bar itself? I can’t seem to find it in any of the templates.
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hi Nishant,
how can I show/hide navigation sections based on field selection.
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hi Nishant,
how can I show/hide navigation sections based on field selection.
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